That was fast.
It took only 12 trading sessions for Apple to drop more than 20% from its all-time high and lose more than half a trillion market cap.
The tech giant has fallen 22.6% from its record intraday high of $ 137.98 as of September 2, and has lost a market value of around $ 532 billion. Apple's rapid and rapid decline followed the massive August surge ahead of the 4-for-1 stock split, while the heavy losses were also due to the fact that Apple's most recent product event – the first in 2020 – didn't live up to the hype has been.
The Tim Cook-led giant announced a slew of new hardware and updated software on Tuesday, including the Apple Watch Series 6, iPad Air, a fitness service, and service packages called Apple One.
However, Apple has not announced any new iPhones. The biggest problem in the Apple One bundle, which would make it even more attractive: a hardware connection to the iPhone.
Toni Sacconaghi, Senior Research Analyst at Bernstein, described the event as "relatively unconvincing".
"We believe it could be difficult to remove users from competitive music, video or game services where they are often entrenched," Sacconaghi said in a note. "We continue to believe that Apple should try to be more creative in bundling its Hardware + services into integrated subscription bundles."
Apple's recent weakness was also due to a widespread tech sell-off as investors turned away from the market-leading high-flyers. The tech-heavy Nasdaq Composite has fallen into correction territory, down more than 10% from its record high. Some investors believe the decline in tech darlings was due to concerns about high valuations that have risen too far and too quickly.
Before the recent sell-off, Apple shares rose 21.4% in August alone as the stock split announcement sparked a rally. The move confused many on Wall Street as such a corporate action would have no impact on company fundamentals or the intrinsic value of existing property.
However, some analysts see Apple bouncing back from here because of its mega-cap position and history of quality products.
Loup Venture's Gene Munster said the key takeaway from the Apple event was how the company "sells its consumers like a master."
"They can get away with it and the reason is that they have some of the best products in the world," Munster said on CNBC's Fast Money Tuesday. "They have great products and consumers see the trade-off, the price premium versus value."
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